Bitcoins strong surge to kick off 2020 has caught many traders on the back foot. Case in point: each leg higher in the price of BTC has been marked by dozens of millions of dollars worth of short liquidations on margin trading platforms like BitMEX.<\/p>\n
While the majority seem to have been caught off guard, one trader called Bitcoins emerging uptrend: Financial Survivalism, also known as Sawcruhteez.<\/p>\n
Just a day after New Years Day, the prominent trader claimed that Bitcoin was starting to show signs it was forming a textbook Wyckoff Spring pattern. The pattern, Sawcruhteez suggested, implied BTC was going to hit $9,200 in the middle of January.<\/p>\n
And that it did. By January 17th and 18th, the leading cryptocurrency had passed above the key psychological and technical resistance of $9,000.<\/p>\n
Now, Sawcruhteez is warning of a potential retracement, which should be a potent caution considering his track record.<\/p>\n
Today Sawcruhteez pointed out that for the trading session of Thursday, the ongoing one-day, two-day, and five-day candles are all printing green 9s, according to the Tom Demark Sequential, a time-based indicator that issues 9 and 13 candles at reversal points.<\/p>\n
The combination of green 9s on three key timeframes, Sawcruhteez wrote, might be a primer for a correction, for it would suggest that the short-term bull trend has been thoroughly exhausted.<\/p>\n
It isnt only the confluence of the TD Sequential printing 9s across time frames that has analysts concerned.<\/p>\n
Thomas Thorntown of Hedge Fund Telemetry recently pointed out that per his Demark Sequential Countdown, which called Bitcoins $6,400 bottom, the indicator is printing a potential sell candle, meaning investors should be cautious.<\/p>\n
This is notable: the indicator printed a 13 candle when Bitcoin hit $20,000 in December 2017, when BTC cratered to $3,150 on December 14th of 2018, and at the $14,000 top in June of 2019.<\/p>\n
Also, extremely profitable cryptocurrency whaleJ0e007 (Joe), who took $14.4 million worth of profits in December 2019 and nearly $7 million in the last month alone, recently warned that Bitcoin could soon be in for a crash so big that the whole crypto space is essentially wiped out, not just a small retracement as some expect.<\/p>\n
He backed this strong assertion by looking to fiat inflows into the crypto market (or lack thereof), noting that theTethers flatlining market capitalizationis hard to explain from a position that were in the middle of a new bull market and that Grayscales inflow data doesnt convince him there is enough demand to absorb the mined supply.<\/p>\n
Despite all this, many bulls remain resolute in their stance that Bitcoin remains in an uptrend that will not see significant pullbacks, at least for now.<\/p>\n
Sawcruhteez recently noted that the three-day Ichimoku Cloud for Bitcoin is now fullybullish, with prices breaking through the cloud resistance and with the future cloud twisting positive. The indicator signaled a buy at $10,268, suggesting more upside is imminent.<\/p>\n
And Dave the Wave, the trader who in the middle of 2019 said the price of BTC would retrace to the mid-$6,000s, just doubled down on his prediction the asset will hit $11,000 to $11,500 before any significant pullback, if at all.<\/p>\n
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